Original title: MedTek Q2 net profit increased by 239.3% year-on-year! There is no impact from the Sino-US trade war, nor is there any plan to go public on the mainland
Summary: Financial report shows that MediaTek's net profit in Q2 reached NT$7.498 billion, a year-on-year increase of 239.3% and a month-on-month increase of 181.9%. MediaTek CEO Cai Lixing said that the P60 chip is a good start, and products that are higher-end than the P60 are expected to be promoted soon this year. In addition, the 5G baseband chip M70 will be officially commercialized next year, and the 5G SoC chip will be launched at the end of next year and the beginning of the year after.
Jiwei.com reported that yesterday afternoon (July 31), MediaTek held a legal meeting and announced its second quarter 2018 financial report. According to the financial report, MediaTek's consolidated revenue in Q2 reached NT$60.481 billion (approximately US$1.974 billion), a year-on-year increase of 4.1% and a month-on-month increase of 21.8%; net profit reached 7.498 billion (approximately US$245 million), a year-on-year increase of 239.3% and a month-on-month increase of 181.9%.
In addition, MediaTek's Q2 operating gross profit was about RMB 5.15 billion, an increase of 21.1% month-on-month and an increase of 13.7% year-on-year; while the gross profit margin was 38.2%, a decrease of 0.2 percentage points from the previous quarter and a increase of 3.2 percentage points from the same period last year. The changes in gross profit margin compared with the previous period and the same period last year are mainly affected by changes in product portfolios.
5G baseband chip M70 will be officially commercialized next year
0 MediaTek CEO Cai Lixing said that the increase in revenue this quarter is mainly due to the smooth increase in new smartphone products and the advance stocking of customers. MediaTek's Q2 mobile computing platform (including smartphones and tablets) increased its revenue share to between 37% and 42%, while the shipments of Q2 smartphones and tablets reached 100 million to 150 million sets, better than previous expectations.
Since the P60 chip has been adopted by customers such as OPPO and vivo in mainland China, India and Southeast Asia, MediaTek has continued to launch a P22 chip that uses a 12nm process process, bringing AI and dual camera functions into more mobile phones. At present, the P22 chip has been successfully imported into Xiaomi mobile phones and Q2 has achieved mass production. Overall, MediaTek's overall product portfolio this year is quite competitive, and it has improved compared with last year in terms of major customer introduction, market share, and gross profit margin.
looks forward to Q3. Cai Lixing said that the introduction of smartphone customers this year is better than last year, but due to the recent slowdown in demand in the smartphone market, although growth and mature products will have good seasonal growth in Q3, the company's Q3 revenue growth will not be too obvious. Cai Lixing predicts that Q3 revenue will reach NT$62.3 billion to NT$67.1 billion, a month-on-month increase of 3%-11%. In addition, considering the recent market demand, we are conservatively looking at the shipments of mobile computing platforms this year. The shipments of Q3 smartphones and tablets are estimated to be 100 million to 110 million sets.
But it is worth mentioning that Cai Lixing pointed out that MediaTek has made full preparations for the 5G replacement wave in 2020, and is actively participating in the 3GPP 5G standard testing, and working closely with global operators and mobile phone customers. MediaTek 5G baseband chip M70 will be officially commercialized next year, and will launch 5G chips at the end of next year and the beginning of the year after, as well as 5G chip solutions that support millimeter wave bands. In the future, I am confident that I can occupy an important position in the 5G market.
will soon launch a higher-level product than P60
. At the Fascist meeting, when mentioning the competitive relationship with Qualcomm , Cai Lixing revealed that this year's P60 chip is a good start, and MediaTek is currently planning 2-3 products, including higher-level products than P60. It is expected to be promoted soon this year. This product will have strong competitiveness for Qualcomm's 700 series; at the same time, in terms of mid- and low-level products, MediaTek will continue to maintain a stable market share and good profits.
In addition, MediaTek is also actively deploying the 5G market. Cai Lixing said that MediaTek 5G baseband chip M70 will be officially commercialized next year. The baseband chip adopts TSMC's 7nm process and will adopt a separate design in the initial stage. In the future, 5G baseband chips will also be integrated into MediaTek's SoC, and MediaTek's 5G SoC chip is expected to be launched at the end of next year and the beginning of the year after. The competitiveness of these new products will enhance MediaTek's overall competitiveness in mobile phone business.
In the future, MediaTek is very optimistic about the market development prospects of NB-IoT (narrowband Internet of Things) and ASIC chips.As the basis for realizing 5G commercialization, MediaTek is stepping up its expansion of NB-IoT business. The company said that NB-IoT business accounts for a small proportion of total revenue and is growing rapidly. With the fermentation of the Internet of Things and smart home markets, the proportion of smart speaker chips is increasing. MediaTek said it will continue to consolidate the North American market and mainland market in the next quarter, among which the Internet of Things market in the mainland will usher in greater growth.
When talking about whether the recent Sino-US trade war has affected MediaTek's business? Cai Lixing said that when looking at the Sino-US trade dispute, the attitude of large customers is very rational, while small customers are relatively conservative, which has no impact on MediaTek at the moment.
Currently, more and more Taiwanese-funded enterprises are logging in or planning to log in to the capital market in mainland China. This year, after Foxconn successfully landed on the A-share market, UD and Sun and Moonlight also announced that they will go public in the mainland. MediaTek said that there is currently no plan to go public in the mainland. (Proofreading/Tuantuan)
